Gold Deposit Scheme (1999)
To mobilise gold held by households and institutions of the country, the 2015 Gold Monetisation Scheme (GMS) will replace the existing Gold Deposit Scheme (GDS),1999 and Gold Metal Loan (GML) Scheme,1998. The deposits outstanding under the GDS will be allowed to run till maturity unless the depositors prematurely withdraw them. As per the directions of Reserve Bank of India (RBI), all Scheduled Commercial Banks (excluding Regional Rural Banks) will implement GMS 2015.The excerpts of GMS 2015 are as follows: a) Resident Indians viz. Individuals, HUFs (Hindu undivided Families), trusts including mutual funds/exchange traded funds registered under Sebi (mutual fund) regulations and companies can make deposits. B) Minimum deposit at any one time shall be raw gold viz. Bars, coins, jewellery excluding stones and other metals, equivalent to 30 grams of gold of 995 fineness. C) No maximum limit. D) Tenure: Banks will accept gold deposits under the Short Term (1-3 years) Bank Deposit (STBD), Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes. E) Principal and Interest of the deposit will be denominated in gold and banks are free to fix the interest rates.